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According to Liquidity Preference Theory,if the Quantity of Money Demanded

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According to liquidity preference theory,if the quantity of money demanded is greater than the quantity supplied,then the interest rate will


Definitions:

Depositary Bank

The first bank to receive a check for payment.

Check Is Drawn

The process by which a check is issued by an account holder, instructing their bank to pay a specified sum to a party named on the check.

Check-Processing Time

The duration it takes for a bank to process a check payment, clearing the funds from the payer's account to the payee.

Overdrafts

A financial situation where an individual withdraws or spends more money than is available in their account, leading to a negative balance.

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